KALY - Kali-Extracts Updates OTCMarkets Filings and Engages Goldman Small Cap Research
December 18 2018 - 9:03AM
InvestorsHub NewsWire
Dallas, Texas -- December 18, 2018 --
InvestorsHub NewsWire -- Kali, Inc. (Kali, Inc. dba/Kali-Extracts,
Inc.) (USOTC:
KALY) (“KALY”) today announced posting all filings required by
OTCMarkets under its OTC Pink – Current Information Tier
standards. On November 15th, the company announced
the acquisition of NCM Biotech in a transaction that changed the
business direction of the company. Prior to that acquisition,
the company’s previous business focus on marina management had
languished. In addition to the marina management business not
advancing as originally planned, the company had fallen behind in
the timely filing of the disclosures required by OTCMarkets.
The company has now caught up on all its past due filing
requirements. However, the information posted on OTCMarkets
to meet the OTC Pink Current Information standard does not include
much information on the current business. Accordingly,
management has engaged Goldman Small Cap Research to initiative
coverage of KALY’s new assets and business direction. The
purpose of this report is to provide shareholders and interested
investors more comprehensive information on the company’s current
operations in a single location. The report will be filed on the
OTCMarkets site. It will include detailed asset and business
descriptions, operational financial analysis, comparisons to
similar businesses, market forecasts and KALY specific
forecasts. The report will not at this time include an
investment recommendation or share price target. The purpose
of the report is to enhance the OTCMarkets’ required disclosures by
providing information on the current operations in addition to the
OTCMarkets reports on historical
operations.
On December 14th, 2018, KALY
released a Letter to Shareholders reconfirming recent acquisition,
contract and partnership announcements. The letter was issued
in response to an OTCMarkets investor precaution published the
previous day. Management has talked with an OTCMarkets
representative who expressed concern regarding the recent increase
in KALY news and a corresponding increase in trading volume.
KALY management contends the news and trading volume increase are
simply a factor of the company’s recent acquisition of NCM Biotech
and the corresponding business direction change. In addition
to efforts such as the updated OTCMarkets filings, the Friday
Shareholder Letter and the Analyst Research Coverage engagement,
all intended to enhance transparency, KALY management will
diligently endeavor to explore, understand and resolve the
OTCMarkets concerns that resulted in their issuance of the Caveat
Emptor investor precautionary flag.
The Friday Shareholder Letter has been
included again below in its entirety in an ongoing initiative to
enhance transparency particularly in the instance of recent
business updates .
From Current CEO Charles Yawn With
Introduction Of Incoming CEO Frederick
Ferri
Dear Shareholders and Interested
Investors:
I am encouraged by the caliber of KALY’s
recent acquisition and enthusiastic about the new business
direction. I love boating and marinas and I’m disappointed
that our marina management business did not flourish as
anticipated. However, I believe the rapidly evolving legal
cannabis sector is a marketplace rich with opportunity and that
KALY’s recent acquisition will be much more than a mere consolation
prize for shareholders. I am pleased to introduce the
incoming CEO, Frederick Ferri, the founder of NCM Biotech and the
individual behind the patented cannabis extraction technology that
is now a KALY asset as a result of the acquisition of NCM Biotech
announced on November 15th, just less than one month
ago:
Kali Inc Acquires Patented Cannabis Extraction
Operation Entering $50 Billion Pharmaceutical Market and $8 Billion
Concentrates Market
I am staying with KALY as the Chairman
while Mr. Ferri assumes the CEO position to lead the new cannabis
extraction business operations. My ongoing role is to support
Mr. Ferri with my pubic company management experience permitting
Mr. Ferri to concentrate on the operational development of his
cannabis extraction business plan.
Mr. Ferri is moving fast in the execution
of his business plan. He has fostered a business relationship
that he brought with his company NCM Biotech, that KALY
acquired. NCM Biotech had licensed its patented extraction
process to Puration, Inc. (PURA) for the production of a CBD
infused beverage called EVERx. Now KALY is working with PURA
to produce new CBD infused beverages. PURA has engaged KALY
to make custom hemp-derived CBD extracts for a private label CBD
infused water that PURA will produce for a client pharmaceutical
company:
Kali-Extracts Inc. Announces $300,000 Contract to
Produce Hemp-Derived CBD Extract for Puration
Inc.
KALY has also entered a joint venture (JV)
agreement with Puration and two additional partners to develop
partnerships with pharmaceutical companies for the ultimate purpose
of developing cannabis based pharmaceutical
products:
Puration, Kali and Nouveau Announce Healthcare
Industry Veteran Steven Rash as CEO of US Cannabis Health
JV
The JV has already entered into its first
agreement with a pharmaceutical client company. The client
company is the same company for which PURA and KALY are producing a
private label CBD infused water. KALY is already preparing to
file for additional patents in conjunction with existing research
it has conducted with its current patented extraction
process. The additional patent filings are intended to
support the JV’s objectives:
Puration and Kali Plan to Submit New Patent
Applications in Conjunction with Generex
Agreement
In an effort to develop sustainable
near-term revenue, KALY has initiated an effort to produce its own
line of CBD candies and vapes targeting the wellness
market:
Kali Inc Introduces HEMP4MULA CBD Infused Candies
and Vapes Into $22 Billion Hemp-Derived CBD
Market
KALY has come a long way in the last month
since the acquisition of NCM Biotech. We where already behind on
our disclosures with OTCMarkets with the languishing of our marina
management business. All the progress in the last month
without rectifying previous delinquencies, can only exacerbate
OTCMarkets concerns on behalf of
investors.
We plan to have the past-due filings
updated promptly. The filings are already prepared to be
filed. I confess that part of the current delinquency was due
to being behind on our OTCMarket bills. I am happy to say we
are now current on payments to OTCMarkets and expect to begin
updating filings today.
To supplement the precautionary warnings
issued by OTCMarkets, I want to conclude by pointing out that even
when KALY finishes updating all its past-due filings, which we
expect to do by no later than close of business on Monday, all
those filings will only include information on the languishing
marina business. The updated filings will include very little
information on the new cannabis extraction business. The new
business information will be a topic of future filings with
OTCMarkets. In the meantime, it will be important for
investors to look for supplemental sources of information.
For instance, from KALY press releases and from the new KALY
website – www.kali-extracts.com.
In an effort to provide further
information on KALY’s new business, we have engaged an independent
analyst to compose a research report on the company. Yes, we
are paying for the research and the conclusions of the analyst are
subject to the scrutiny that KALY management may have influenced
the analyst’s conclusions. I will tell you that is not the
case. We will not interfere with the analyst’s independent
analysis. You can decide whether or not to believe me.
In any case, the analyst’s report will include a detailed
description of the company’s assets, contracts and developments
that will provide investors consolidated information on the company
that is likely not available in a single source anywhere
else. We will post the analyst report on the company’s
website. We expect to have it by the end of next
week.
Thank you for your time, interest and
attention.
Sincerely,
Charles
Yawn
CEO and
Chairman
Kali, Inc.
For more information visit:
www.kali-extracts.com
Disclaimer/Safe
Harbor:
This news
release contains forward-looking statements within the meaning of
the Securities Litigation Reform Act. The statements reflect the
Company's current views with respect to future events that involve
risks and uncertainties. Among others, these risks include the
expectation that any of the companies mentioned herein will achieve
significant sales, the failure to meet schedule or performance
requirements of the companies' contracts, the companies' liquidity
position, the companies' ability to obtain new contracts, the
emergence of competitors with greater financial resources and the
impact of competitive pricing. In the light of these uncertainties,
the forward-looking events referred to in this release might not
occur. These statements have not been evaluated by the Food and
Drug Administration. These products are not intended to diagnose,
treat, cure, or prevent any
disease.
Contact:
Kali, Inc.
Frederick Ferri
ir@kali-extracts.com
(214) 210-0459
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